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Wednesday, 9 August, 2023 I 21 Muharram, 1445
SAYS AFTER PRESIDENT’S ASSENT, AFFAIRS WILL BE IN HANDS OF CARETAKER GOVERNMENT
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ISLAMABAD
SANAULLAH SAYS CONSULTATION ABOUT CARETAKER PM UNDER WAY, LIKELY TO BE FINALIZED BY TODAY
STAFF REPORT
OURING out his heart Prime Minister Shehbaz Sharif on Tuesday confirmed that he will send a formal recommendation to President Arif Alvi for the dissolution of the National Assembly following the completion of the government’s term on Wednesday (today). “After completing our tenure, I will write and send the advice to President Alvi to dissolve the assembly and then an interim government will take over,” the prime minister said while addressing a ceremony in Islamabad on Tuesday. “Tomorrow I will recommend the president to dissolve the government and the assembly, after which the affairs will be in the hands of the caretaker government,” he remarked. The Pakistan Democratic Movement (PDM) coalition government led by the Pakistan Muslim League-Nawaz (PML-N) had earlier announced that the assemblies will be dissolved on August 9 (today). Based on Article 224(2) of the Constitution of Pakistan, elections should be held within 90 days of the dissolution of an Assembly – whether National or Provincial – and the results should be declared in a maximum of 14 days after the
conclusion of polls. Speaking at the event, the prime minister outlined his vision for a transition to cleaner and more affordable energy sources for citizens. ‘CARETAKER PRIME MINISTER’S NAME WILL BE FINALIZED SOON’: On the other hand, Interior Minister Rana Sanaullah said on Tuesday said consultation about the caretaker prime minister was under way and expressed hope that the name would be finalized by this evening or tomorrow (today).
New tax rates imposed on property transactions in Punjab g
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CHANGES UNDERSCORE GOVT'S ONGOING EFFORTS TO ENHANCE REVENUE GENERATION PROFIT
SHAHAB OMER
New tax rates have been implemented for the sale and purchase of property in Punjab as the Punjab Land Record Authority (PLRA) has issued a directive to all revenue officers to enforce the collection of taxes from both buyers and sellers based on the revised tax rates. The PLRA’s move comes in response to amendments introduced by the Finance Act of 2023, which entail adjustments to the income tax rates and related provisions of sections 236C and 236K of the Income Tax Ordinance 2001. Under the previous tax regime, individuals involved in property transactions were subjected to tax rates of 2 percent for filers and 4 percent for non-filers, as per section 236C. However, the revised rates now stipulate a tax rate of 3 percent for filers and 6 percent for non-filers on the sales, transfers, and disposals of properties. Similarly, section 236K, which pertains to property purchases, has also undergone modifications. Previously, filers were required to pay 3 percent in taxes, while non-filers were taxed at a rate of 7 percent. Under the new provisions, the tax rates remain at 3 percent for filers, but non-filers are now subject to a higher tax rate of 10.5 percent for property purchases. The changes came into effect on July 1, 2023, and are designed to streamline the taxation process associated with property transactions. However, failure to adhere to the revised tax rates and provisions could result in legal consequences, as the Federal Board of Revenue (FBR) is empowered to recover any discrepancies identified through scrutiny from the transferring authorities. An official of the Board of Revenue Punjab informed this scribe that these adjustments aim to align taxation rates with current economic realities while ensuring that revenue collection remains efficient and equitable.
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In a statement, the PML-N leader said the caretaker set-up would perform its constitutional duty of carrying out delimitations. He said the delimitation process would take 120 days. After completion of the delimitation process, he said, elections would be conducted. As for the names of the caretaker PM, the minister said names were under discussion and no name had been finalised yet. The minister said elections would not be unnecessarily delayed and the care-
taker government and security agencies would ensure security and other aspects. Meanwhile, one of the contenders for caretaker prime minister’s (PM) slot, former finance minister Abdul Hafeez Shaikh has arrived in Pakistan on Tuesday. The likely caretaker PM Abdul Hafeez Shaikh reached Karachi two days ago and contacted his close friends in Islamabad, said sources, adding that the former finance minister discussed political and economic situation with his aides. Yesterday, Pakistan People’s Party (PPP) Secretary General Nayyar Hussain Bokhari on Monday denied consensus on former finance minister Hafeez Shaikh’s name for the caretaker prime ministership. “Rana Sanaullah should have not talked about Hafeez Sheikh’s name,” the PPP leader said reacting to the statement of the minister. Earlier, Interior Minister Rana Sanaullah claimed that former finance minister Hafeez Shaikh was among the candidates shortlisted for the slot of the caretaker prime minister. Shaikh’s name was among those earlier reported to have been included in a list of five finalised by parties in the ruling coalition for the caretaker prime minister. The purported list was also said to have included former chief justice of Pakistan Tassaduq Hussain Jillani.
‘Constitutional requirements’ may delay elections ‘a bit’: Ministers ISLAMABAD
STAFF REPORT
Two keys minister of the PML-Nled ruling coalition – Interior Minister Rana Sanaullah and Defence Minister Khawaja Asif on Tuesday cast doubt on “timely conduct of general elections,” saying there is a possibility of a delay in holding the {next general elections}. The government has announced that assemblies will be dissolved on August 9, following which elections should be held within 90 days of the end of the assemblies’ tenure, as per constitution requirement. Speaking on Geo News programme ‘Geo Pakistan’ on Tuesday morning, Interior Minister Rana Sanaullah said that 2023 was not the election year. When asked if 2023 was the year when elections would be held, the minister said, “It is an absolutely straightforward answer — no.” Rana Sanaullah continued that under the Constitution, another general election could not be held on the 2017 census results as they had been accepted “provisionally for a single time”. Emphasising that it was required by the Constitution to carry out the delimitation process after a census was notified, Sanaullah said, “The caretaker government, while fulfilling this constitutional requirement, will carry out the delimitation process.” When one of the hosts com-
mented that the upcoming caretaker setup had “acquired an unconventional significance as the one to get the role might stay for more than three months”, Sanaullah insisted that there was nothing extraordinary about it. Earlier, Prime Minister Shehbaz Sharif said that elections would be held on the basis of the latest census. Although some of the ruling allies, including the PPP, had opposed holding the polls under the fresh census, the Council of Common Interest (CII) on Saturday had approved the results of the 2023 digital census. A day after the CCI ratified the census, making it almost certain that general elections may not be held this year due to the compulsory need for fresh delimitations, the federal government shifted the responsibility of conducting polls to the Election Commission of Pakistan (ECP) within the next three months. The ECP had in the recent past declared that conducting polls on fresh delimitation was not possible and that the exercise would require four to six months. The commission is expected to decide the time frame for fresh delimitation of constituencies later today. The minister noted that the process takes around 120 days so there was nothing about the elections being delayed by “many months”. “As soon as this constitutional requirement of delimitation is completed, then after that,
God-willing, elections will be held,” he said. Talking about the names under consideration for the role of the caretaker prime minister, Sanaullah said they were all “respected names and discussions were under way”. “No name has been locked till now. Even if it is [decided], till today evening or tomorrow … there are more chances that it will be locked tomorrow,” he said. A day earlier, Sanaullah had made the same statement while speaking on Geo News programme, ‘Aaj Shahzeb Khanzada Kay Saath’. “I cannot predict the future but if 90 days have turned into 120 days, there is a clear constitutional argument present for it,” he said. The minister said that under the Constitution, two elections could not be held on the results of the 2017 census, adding that the previous census was approved “provisionally”. “According to the Constitution, if the census has been notified, delimitation is necessary after that. So on this basis, delimitation is to be conducted,” Sanaullah said. “So these are constitutional requirements, which are being implemented according to the Constitution. It is not the case that the 90-day [limit] has gone to 120 days without any reason,” he said. Khanzada then pointed out that in an earlier statement, Sanaullah had insisted that a new census was not needed.
ECC approves SME Assan Finance Scheme
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MARKET TURBULENCE AND ELECTION UNCERTAINTY TRIGGER PROFITING TAKING SPREE PROFIT
STAFF REPORT
Shares at the Pakistan Stock Exchange (PSX) experienced a significant decline on Tuesday, with the benchmark KSE-100 index dropping 956 points or 1.98%, closing at 47,429.82 points. At one point during the day, it even reached an intraday low of a 1,041-point decline around 3:29 pm. Siddique Dalal, the CEO of Dalal Securities, attributed this decline to a notable surge of almost 8,000 points from the 40,000-mark, which had inevitable repercussions. Some firms engaged in profit-taking activities, and there was uncertainty surrounding the upcoming elections. Reports of potential election process delays added to the confusion. Dalal believed that the market might need a day or two to resume its upward trend, depending on whether an interim setup would be established or elections would be conducted within the next three months. Raza Jafri, the Head of Research at Intermarket Securities, explained that the decline was a result of profit-taking after a significant rally in the Fiscal Year To Date (FYTD). The selling pressure primarily targeted energy stocks, which had risen due to expected resolution of circular debt issues, but that resolution hadn’t materialized yet. Jafri emphasized that Pakistan’s macroeconomic landscape remained strong, and with expectations of interest rate reductions, there was potential for reevaluation of valuations. He also saw the ongoing market correction as an opportunity to accumulate holdings during market dips strategically. Ahsan Mehanti, the CEO of Arif Habib Commodities, stated that investor apprehensions regarding political turbulence, uncertainty about the caretaker administration’s appointment, and the depreciation of the national currency contributed to the stock market’s decline. Additionally, discouraging figures related to oil sales, exports, and fertilizer production in July 2023, along with a downturn in global crude oil prices, collectively influenced the market’s bearish performance.
Toshakhana verdict: ECP disqualifies Imran for five years ISLAMABAD
STAFF REPORT
The Election Commission of Pakistan (ECP) on Tuesday disqualified former prime minister and Pakistan Tehreek-i-Insaf (PTI) Chairman Imran Khan for five years and de-notified him as a returned candidate from NA-45 Kurram following his conviction in Toshakhana case. Deposed prime minister Imran Khan was arrested and sent to famous Attock jail on Saturday hours after a trial court in Islamabad sentenced him to three years in prison while imposing on him a fine of Rs100,000 for making false declarations about his assets to the polls supervisory body. Additional Sessions Judge Humayun Dilawar also disqualified the PTI chief for five years, apparently ending his prospects for taking part in the elections slated for November this year, provided that superior courts do not come to his rescue this time. “This court finds it more than convincing that the complainant [ECP] has provided confidence inspiring, well-knitted and corroborated evidence and so the charge against the accused has successfully been proven,” the judge said in his 30-page verdict issued at the conclusion of a rather speedy trial initiated on a criminal complaint of the ECP. The trial court said while filing Form-B for financial year 2018-2019, Imran Khan had declared “four goats” as his assets but omitted to disclose purchase of precious gifts from the state’s gift repository— Toshakhana — as well as their sale to different people. Every lawmaker is supposed to submit Form-B to the ECP on a yearly basis.
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SBP IN CONSULTATION WITH EIGHT BANKS PROPOSED REVISED FEATURES OF SCHEME AND ITS BUDGETARY IMPACT PROFIT
SHAHZAD PARACHA
The Economic Coordination Committee (ECC) of the Cabinet has approved the SME Assan Finance Scheme in its session held on Tuesday. The scheme entails the availability of financing for Small and Medium Enterprises, on concessionary rates, which will in turn give a boost to the economy. Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar chaired the meeting of ECC. Sources said that the State Bank of Pakistan in consultation with eight banks proposed revised features of the scheme and its budgetary impact. Risk coverage by the banks The proposed risk coverage under this scheme up to Rs4 million loan will be 50% instead of 60%. Similarly, the risk coverage above Rs4 million and upto Rs7 million has been reduced to 40%. In addition, the risk coverage will be
30% instead of 40% above Rs7 million and upto 10% under the proposed scheme. Banks Margin Under this scheme, the bank’s share has been reduced to 6% from 8%, the SBP margin has been increased to 3% from 1% and the end user’s rate under the scheme will be 9%. Sources said that the amount of guarantees issued under the SME Assan Finance schemes upto June 30, 2022 is Rs7.32 billion and an amount of Rs7.5 million has been released against the claims received. The total financial impact of the risk sharing facility to the GoP has been worked out to Rs12 billion to be provided to SBP for onward payments to banks over next two years. Outsourcing of Islamabad International Airport The Ministry of Aviation has also appraised the ECC that the PM steering committee has proposed to outsource three airports however, it was decided that in the first instance only Islamabad International Airport shall be considered for outsourcing
whereas the two remaining airports can be outsourced in light of the experiences and insights gained from outsourcing of IIA. Sources said that the International Finance Corporation in its inception report highlighted some issues including long outstanding PIA receivables, the uncertain macroeconomic conditions, PCAA concession fee, tariff charges escalation mechanisms, fate of PCAA employees which could hamper the smooth execution of the outsourcing initiatives. Sources also said that IFC also emphasized upon the need for a service agreement between all these entities performing “reserve functions” and PCAA may not be held responsible for any breach of the agreed performance indicators. IFC has prepared the State Support Agreement in line with recommendations and some of their concerns which are of an operational nature shall be addressed in the Service Level Agreement at a later stage. According to the finance ministry, the
ECC also approved a summary of the Ministry of Aviation on a state support agreement for the outsourcing of Islamabad International Airport through international competitive bidding. The ECC considered a summary of the Ministry of Industries and Production regarding Urea fertilizer requirement for Rabi season 2023-24. Considering the recommendations/proposals given by Fertilizer Review Committee (FRC), the ECC decided that the SNGPL based plants i.e. Fatima Fertilizer (Sheikhupura) and Agritech may be allowed to operate beyond 31st August, 2023 till 15th October, 2023. A summary submitted by Pakistan Atomic Energy Commission regarding the issuance of GoP Guarantee for Chashma Nuclear Power Project Unit -5 (C-5). The ECC decided to allow the issuance of a gradual sovereign Guarantee for the Chasma C-5 project within the IMF program. The Ministry of National Food Security & Research submitted a summary for exten-
sion of Financial Schemes of Kissan Package 2022. The ECC after discussion allowed extension in time period as per fiscal space available till 31 December, 2023 to Financing Schemes of Kissan Package including Provision of subsidy for interestfree loans for subsistence farmers in flood affected areas, PM’s Youth Business and Agriculture Loan Scheme (PMYBALS), Markup Subsidy & Risk Sharing scheme for Farm Mechanization (MSRSSFM) and Interest Free Loan to landless farmers in the flood affected areas. The ECC also considered a summary of the Ministry of Industries & Production regarding North Waziristan District (NWD) Single Entity Export Processing Zone. It was decided that Mineral Lease located in Muhammad Khel for an area of 30 Sq. Km (ML – 30) and Exploration Lease located in Manzar Khel for an area of 101 Sq. Km (EL-101) was declared as NWD Single Entity Export Processing Zone under Section 2 (k) of the EPZA Ordinance 1980.